Is Chinese Upstart Temu an Amazon Killer?
Unless you've been living under a rock, it's hard not to have noticed the growth of the Chinese e-commerce platform Temu over the last year. After flooding the internet with advertisements and spending a boatload of money on two Super Bowl commercials, the PinDuoDuo-owned (NASDAQ: PDD) app has skyrocketed to the top of the downloads list for mobile app stores in the United States.
Offering free shipping and huge discounts for first-time customers, Temu has drawn interest from tens of millions of shoppers in the United States, replicating a model that worked in the Chinese market. Have we finally found the killer competitor to Amazon (NASDAQ: AMZN)? Or is Temu just a flash in the pan? Let's investigate.
Temu was born out of PinDuoDuo, a Chinese e-commerce company that has gained rapid success in the East Asian nation since launching in 2015. The U.S. version of the app launched around a year ago in the country and has grown at an extremely quick pace. Spending a boatload of money on advertising, Temu has vaulted itself to be the most downloaded mobile application in 2023, with tens of millions of downloads just in the United States.
Source Fool.com
